Tuesday, December 22, 2009

Government debt finance

I am reading Hamilton's Curse by Tom DiLorenzo. It talks about Hamilton's influence on our country and how his policies helped launch the growth of government. I found this passage camparing government debt versus private debt particularly good.
"Politicians, on the other hand, have no personal obligation to pay anyone anything when they vote to spend mor ethan the tax revenues that are available. They are spending other people's money and face little or no consequences if they spend it foolishly."


DiLorenzo goes on to talk how they are often rewarded for this, and this is how we get to trillions of dollars in debt with no end in sight. Go USA!

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